QLD Gold Coast with a 5 year outlook.

Hi All,
Interested to get some feedback on investing in the Gold Coast with the aim of a buy and hold with about a 5-7 year outlook. Keen to focus on people's outlook and areas to consider.

I know very little about the area but continually read encouraging articles that point to good (but yes volatile) growth.

Positives include:
Ever falling aussie dollar making the GC a tourism hot spot (and don't think we will see parity for a long time, meaning here to stay)

Infrastructure projects including a new light rail.

Upcoming commonwealth games.

The significant population growth which I have read as a percentage is larger than any other capital city (Gold Coast being the 6th largest I believe).

I am concerned about the over development of the area but would try and concentrate more towards a house or townhouse to be more invested in the price of the land. Keen to stick within a 5km radius of the CBD.

Apologise if there is already a heap of threads but a quick search only had mentions of the GC in a number of posts.

Thanks in advance

 

I wouldn't go near the GC apartment market, as I believe there is still an over supply. However I believe northern suburbs like Helensvale presents good value, due to its proximity to GC and Brisbane job hubs.

 

I think the GC market has a pretty good outlook as per the reasons you listed. If you can get a townhouse around Mermaid Beach/Waters for a decent price you will do pretty well out of it.

 

Yea it should do well, but then it will bust again. I have 2 with in that region, and once I get my growth will look to sell them and buy into less volatile markets. My best guess is it will be booming around 2020 and would be a good time to sell.
Reason being, the dollar would have dropped to it's lowest and the games would have shown the world how nice the Gold Coast, which would cause an influx of tourists further boosting the euphoric feel of the never- will- end- growth.

I'm probably reading way too much into it though

 

The apartment market has enough supply for the next several years but they consistantly approve more apartment developments smashing any hope of growth for the foreseeable future.
Existing houses is the only thing I would consider but the uplift from commonwealth games and the Light rail is very speculative at best. The Gold Coast is its own worst enemy. While town planners approve developments and apartments sit empty should be a big X

 

Im on the GC as everyone has said stay away from apartments. My observations from suburb Im in is there as been about 10% growth over last year so basically just back over peak prices in 2007. Stick to entry level houses they sell even in down times. Popular suburbs and ones I keep my eye on are Southport ( good rental yield low vacancy rates).
Beachside suburbs from Broadbeach to Palm Beach. Miami and Burleigh are very hot at moment.

 

Does anyone know what the subdivision guidelines are like for Southport and Nerang ?

 

What about beachside smaller, older, boutique apartments (say a block of 8)?
Is there an additional opportunity for these because of the developers wanting to buy them as well? Does this create more demand and consequently differ in growth opportunities to rest of the apartment market?

 

I would probably look at something like this over a unit. No body corp fees with duplex'. http://www.realestate.com.au/property-duplex+semi+detached-qld-miami-120480213
Miami is a hipster hotspot ;-)

Older walk to James St unit in Burleigh may do ok as the suburb is getting very pricey....just check body corp can be a killer. Also concrete cancer in buildings is becoming issue in some places so do you DD.

 

You can pick up an older 2 bedder unit in small block, near the beach for 210k+ that would rent for about $300 p/w with lower body corps. A potential option..
Town houses are an option + semis or houses.
Large high rise are a no go due to comments from above posts

 

I love the constant references to the Comonwealth Games as a driver for the market. A 2 week B grade sporting event driving sustainable long term growth. Funny.

I have a place in Southport. Paid 160k. 22 months ago. Current valuation $180k. Fine, and I'll hang onto it for ***** and giggles (costs me nothing to hold) but its never going to be a game changer for me.

I'd go a little further North than the GC where better growth drivers exist.

 

That sounds like a unit, is it?

 

Cant say I have seen a house anywhere on the Gold coast for $160k

 

The Goldie was doing it pretty tuff for a few years there ... but I've been noticing steady growth for houses over the last 2 yrs. There is obviously a lot of commercial development at the moment and planned for the near future with a pro-active council as population growth continues to climb. It will always be a popular place to live and prices are relatively cheap compared to other cities. I think the future is looking good for investing in the area.

 

Who's talking about sustainable long term growth?

 

Lets hype the gold coast :-0

http://www.yourinvestmentpropertyma...-improved-location-for-investment-205867.aspx

http://www.afr.com/real-estate/gold...1-per-cent-next-year-says-sqm-20150922-gjs4zw

 

I know a property I lived in in 2012 sold for $460,000 and now would easily sell for close to $600,000 so some areas of the Gold coast have already seen strong growth . So its not all doom and gloom here. Like every city there are markets within markets.

 

Agree with Mel_C and Hawkeye. The bottom of the (housing) market here was early 2013. There is limited housing stock in the linear stretch that hugs the coast (say within 5 km inland from the water) from Labrador all the way to the border at Coolangatta and things are selling fairly promptly. The tough days are over for now. The cranes are returning so expect an apartment glut sometime in the next 3-5 years. I don't buy brand new strata so can't comment on the current state of that market. The used apartment market is also moving stock. The bargains are over. Whilst the rest of Australia was unscathed from the GFC of 2008, the Gold Coast and Sunshine Coast did it very tough. The sun shines brightly now for (houses). As far as commercial, I don't see value here any more as the market for retail and industrial has moved with tightening yields. I wouldn't be buying commercial here. Residential housing that is near the water or near good infrastructure should do well for the next few years IMO.

Merely my 0.02....................

 

Agree with Southport as a good location if you can find a big old house on a big block, although I haven't looked at the numbers very recently.